Correlation Between Westinghouse Air and ReWalk Robotics
Can any of the company-specific risk be diversified away by investing in both Westinghouse Air and ReWalk Robotics at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Westinghouse Air and ReWalk Robotics into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Westinghouse Air Brake and ReWalk Robotics, you can compare the effects of market volatilities on Westinghouse Air and ReWalk Robotics and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Westinghouse Air with a short position of ReWalk Robotics. Check out your portfolio center. Please also check ongoing floating volatility patterns of Westinghouse Air and ReWalk Robotics.
Diversification Opportunities for Westinghouse Air and ReWalk Robotics
-0.83 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between Westinghouse and ReWalk is -0.83. Overlapping area represents the amount of risk that can be diversified away by holding Westinghouse Air Brake and ReWalk Robotics in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on ReWalk Robotics and Westinghouse Air is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Westinghouse Air Brake are associated (or correlated) with ReWalk Robotics. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of ReWalk Robotics has no effect on the direction of Westinghouse Air i.e., Westinghouse Air and ReWalk Robotics go up and down completely randomly.
Pair Corralation between Westinghouse Air and ReWalk Robotics
Considering the 90-day investment horizon Westinghouse Air Brake is expected to generate 0.31 times more return on investment than ReWalk Robotics. However, Westinghouse Air Brake is 3.19 times less risky than ReWalk Robotics. It trades about -0.09 of its potential returns per unit of risk. ReWalk Robotics is currently generating about -0.23 per unit of risk. If you would invest 19,803 in Westinghouse Air Brake on September 22, 2024 and sell it today you would lose (500.00) from holding Westinghouse Air Brake or give up 2.52% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Significant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Westinghouse Air Brake vs. ReWalk Robotics
Performance |
| Timeline |
| Westinghouse Air Brake |
| ReWalk Robotics |
Westinghouse Air and ReWalk Robotics Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Westinghouse Air and ReWalk Robotics
The main advantage of trading using opposite Westinghouse Air and ReWalk Robotics positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Westinghouse Air position performs unexpectedly, ReWalk Robotics can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in ReWalk Robotics will offset losses from the drop in ReWalk Robotics' long position.| Westinghouse Air vs. Greenbrier Companies | Westinghouse Air vs. LB Foster | Westinghouse Air vs. Freightcar America | Westinghouse Air vs. CSX Corporation |
| ReWalk Robotics vs. Westinghouse Air Brake | ReWalk Robotics vs. Corporacion America Airports | ReWalk Robotics vs. BOS Better Online | ReWalk Robotics vs. Alaska Air Group |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Portfolio Dashboard module to portfolio dashboard that provides centralized access to all your investments.
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